RBS Loses 700 Top Traders

The Royal Bank of Scotland lost more than 700 top investment bankers to other banks that paid higher salaries and guaranteed bonuses, the Sunday Times newspaper reported Sunday, without citing sources.

RBS’ profitable global banking and markets units were targeted by rivals, with teams in commodities and fixed income jumping ship, the paper reported.

Traders are being offered a year’s salary in cash as a singing bonus by other banks, the Sunday Times said, citing headhunters.

RBS is now majority owned by the UK government and new CEO Stephen Hester has been forced to raise the salaries of some top executives to prevent their defection to competitors like Barclays Capital and Nomura, the paper said.

Shares of RBS were higher in morning European trading, following the rest of the banking sector.